Question
Chapter 14 HW Questions
Note: For each question, you must provide your source in the proper APA
format.
1. Current asset management strategy: Describe the risks that are associated with a
restrictive current asset management strategy.
1. Organizational form: List some common forms of business organization, and
discuss how access to capital differs across these forms of organization. If you had
your own company, what form of business would you have and how would you
access capital?
2. Starting a business: What are some of the things that the founder of a company
must do to launch a new business? Provide examples on what you would do and
what type of business you would have.
1. Strategic plan: Explain the importance of the strategic plan.
2. Capital budget: What are the various steps in preparing a capital budget?
3. Financing plan: What are the elements of a financing plan?
4. Financial planning: Identify the steps in the financial planning process.
5. Financial modeling: List the various elements of financial modeling.
6. Payout ratio: Define the retention (plowback) ratio and the dividend payout ratio.
11. Capital intensity ratio: Define capital intensity ratio, and explain its significance.
18. Country risk: Ford Motor Company maintains production facilities in many
different countries including Brazil, Taiwan, and the United States. Given the data in
Exhibit 21.6, which production plant is likely to face the greatest country risk? How
does country risk affect a firm’s capital budgeting decisions?
19. Foreign exchange rate risk: How is transaction exposure different from
operating exposure?
20. International debt: What are Yankee bonds?
